a. Analyze each firms profitability, which firm is the most profitable? Is there a clear cut way to distinguish which company is most profitable?

b. Why is ROE greater than ROA for each company?

c. PepsiCo's ROA lies between the other two firms, but its ROE is much larger, what does this suggest about PepsiCo in terms of their leverage compared to the other companies?

 

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Revenues Cost of goods sold Earnings Total assets Shareholders equity Coca-Cola $41,863 16,465 6,527 87,270 23,062 Pepsico $62,799 28,209 6,329 74,129 11,246 Keurig Dr Pepper $6,440 2,582 847 9,791 2,134 Revenues Cost of goods sold Earnings Total assets Shareholders equity Coca-Cola $41,863 16,465 6,527 87,270 23,062 Pepsico $62,799 28,209 6,329 74,129 11,246 Keurig Dr Pepper $6,440 2,582 847 9,791 2,134 Revenues Cost of goods sold Earnings Total assets Shareholders equity Coca-Cola $41,863 16,465 6,527 87,270 23,062 Pepsico $62,799 28,209 6,329 74,129 11,246 Keurig Dr Pepper $6,440 2,582 847 9,791 2,134 Revenues Cost of goods sold Earnings Total assets Shareholders equity Coca-Cola $41,863 16,465 6,527 87,270 23,062 Pepsico $62,799 28,209 6,329 74,129 11,246 Keurig Dr Pepper $6,440 2,582 847 9,791 2,134

Answer rating: 100% (QA)

To analyze the profitability of the three firms CocaCola PepsiCo and Keurig Dr Pepper well consider ... View the full answer